Kawasaki Kisen Kaisha (K Line), Taiwan Power Company (Taipower), U-Ming Marine Transport Corporation and Kuang Ming Shipping Corporation have agreed to establish a new joint venture shipping company.
The four companies jointly signed Memorandum of Understanding in Taipei on 1 July to establish the new entity. The new joint venture will own both coal and LNG carriers, and operate them for transporting these raw materials to Taipower.
Taipower will hold 40% of the equity, with U-Ming holding 32.5%, Kuang Ming 20.0%, and K Line 7.5%
Set to be established in October 2020 with capitalisation of TWD1B (US$32.23M), the name of the new joint venture company is yet to be decided. It will be based in Taipei.
K Line said it has accumulated an abundance of experience and specialised skills concerning the management and transport of coal and LNG.
“We will devote ourselves to contribute to the safety of Taiwan’s energy requirements by providing our many years of accumulated know-how in ship management and safe ship operations to this new joint venture,” stated K Line.